The Public Transport Guide is sold in Popular Bookstores for $6.42. I wish to share this story on its usefulness.
I have to attend a 1 day event at Ulu Pandan CC today. I have the choice to drive there as I live quite far away. This means paying parking charges for 1 day.
I decided to try MRT but was not sure about how to get there. I looked at the Public Transport Guide and select page 6 (Queenstown). I guessed that the nearest MRT station was Buona Vista. Indeed it was. From there, the guide indicated that I could take bus 92 to my destination.
I found that the distance from the station to the destination. was quite short, so I have the option to walk the last leg.
The advantages of this Public Transport Guide are:
a) It also acts as a street directory
b) It is easy to locate he bus service
c) It is light and can be easily carried
I have suggested to LTA to display a map in each MRT station and bus stop showing the street directory and bus stops within 3 km. I hope that they will take my suggestion. It will be convenient for commuters who do not have the street directory with them.
Some people are not familiar with using a street directory. They can ask for advise from another person at the station or bus stop.
Monday, January 7, 2008
Insuring a risk
If you face a risk with possible losses ranging from $0 to $10,000 and an expected loss of $500, will you pay $700 to insure the risk?
The answer should be "yes". Although the expected loss is $500, the actual loss can be as high as $10,000.
The difference of $200 (about 30% of $700) represents the cost of providing the insurance protection. It goes to cover the marketing, underwriting and claim processing cost of the insurance company. An expense margin of 30% is fair, in the case of an insurance contract that provide indemnity for losses. For a competitively priced insurance, the ratio of losses to premiums should be around 70%.
In the case of a life insurance contract that accumulate savings for the future, the expense ratio should be much lower, say from 5% to 10%.
The answer should be "yes". Although the expected loss is $500, the actual loss can be as high as $10,000.
The difference of $200 (about 30% of $700) represents the cost of providing the insurance protection. It goes to cover the marketing, underwriting and claim processing cost of the insurance company. An expense margin of 30% is fair, in the case of an insurance contract that provide indemnity for losses. For a competitively priced insurance, the ratio of losses to premiums should be around 70%.
In the case of a life insurance contract that accumulate savings for the future, the expense ratio should be much lower, say from 5% to 10%.
Secret Formula
Do you know the secret formula for the Amazing Number puzzle?
http://www.tankinlian.com/amazing/index.html
http://www.tankinlian.com/amazing/index.html
High charges on regular premium ILP
Hi Mr. Tan,
I've just realised to my horror that I've tied myself down to a useless investment product - a regular ILP. This is with X. My monthly premium is $100.
I have been paying premiums for the past two years. The value of the investments is only about $600. If I surrender the policy, this is what I'll get back. Should I continue? Will this investment ever even break-even?
REPLY
You have incurred most of the upfront expenses already. From now on, most of your premium will be invested. What you have spent in high charges in the past should be written off. I suggest that you keep this ILP policy.
Lesson: Avoid regular premium ILP. The charges are too high. 18 months of the premium has been taken away to pay commission and marketing expenses.
I've just realised to my horror that I've tied myself down to a useless investment product - a regular ILP. This is with X. My monthly premium is $100.
I have been paying premiums for the past two years. The value of the investments is only about $600. If I surrender the policy, this is what I'll get back. Should I continue? Will this investment ever even break-even?
REPLY
You have incurred most of the upfront expenses already. From now on, most of your premium will be invested. What you have spent in high charges in the past should be written off. I suggest that you keep this ILP policy.
Lesson: Avoid regular premium ILP. The charges are too high. 18 months of the premium has been taken away to pay commission and marketing expenses.
Rejection of medical claim - congenital condition
Dear Mr. Tan,
I have taken medical insurance for my daughter since she was a baby. There was no claim for more than 10 years.
Recently, we discovered that she was suffering from a serious medical condition. The insurance company X rejected the claim as the medical condition was congenital. We feel that this is most unfair. What is your advice?
REPLY
I suggest that you bring this this matter up to the senior management of X. You can point out that this illness was discovered more than 10 years after the policy was taken up. Due to the long lapse of time, it may not be fair for them to apply the congenital clause.
Perhaps you can ask them to get their doctor to certify that the illness is really congenital and should be excluded.
If they do not give you a satisfactory explanation, you can lodge a complaint with the Financial Dispute Resolution Center: http://www.fidrec.com.sg/website/faq.html
I wish to extend my sympathies on your predicament, first on this unexpected illness and second on the rejection of the claim. I hope that the senior management of X will take a sympathetic view. I wish you all the best.
I have taken medical insurance for my daughter since she was a baby. There was no claim for more than 10 years.
Recently, we discovered that she was suffering from a serious medical condition. The insurance company X rejected the claim as the medical condition was congenital. We feel that this is most unfair. What is your advice?
REPLY
I suggest that you bring this this matter up to the senior management of X. You can point out that this illness was discovered more than 10 years after the policy was taken up. Due to the long lapse of time, it may not be fair for them to apply the congenital clause.
Perhaps you can ask them to get their doctor to certify that the illness is really congenital and should be excluded.
If they do not give you a satisfactory explanation, you can lodge a complaint with the Financial Dispute Resolution Center: http://www.fidrec.com.sg/website/faq.html
I wish to extend my sympathies on your predicament, first on this unexpected illness and second on the rejection of the claim. I hope that the senior management of X will take a sympathetic view. I wish you all the best.
Sudoku Challenge - Preliminary Round
The preliminary round of Sudoku Challenge (for people 40 and over) was held at Bishan Community Club on 6 January. A total of about 130 people participated in the two sessions. They spent about 25 to 60 minutes to complete 5 Sudoku puzzles.
The top 16 winners have been identified. They will take part in the Finals to be held at Suntec City on 13 January.
The public is invited to watch this event. There will be other mind games which are being held at the same time. There is also an exhibition.
The top 16 winners have been identified. They will take part in the Finals to be held at Suntec City on 13 January.
The public is invited to watch this event. There will be other mind games which are being held at the same time. There is also an exhibition.
Risk Management and Insurance
I conducted the first class on Risk Management and Insurance at Singapore Management University today.
I enjoy the experience. The students participated well. From their feedback, they like the topics covered, which are useful and relevant to them.
I enjoy teaching and sharing my working experience with the students.
I enjoy the experience. The students participated well. From their feedback, they like the topics covered, which are useful and relevant to them.
I enjoy teaching and sharing my working experience with the students.
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